World Telecommunication Day 1999

IHT October 11, 1999


Smaller Businesses May Pull Data Out of the Air

Fixed broadband wireless emerges as a high-speed alternative for accessing data networks such as the Internet.


While inhabitants of the small and medium-sized business sector ponder the attributes of their various network connectivity options - including cable modems, digital subscriber lines, T-1/E-1 connections and fiber - a new alternative for gaining higher-speed access to data networks like the Internet has been steadily beaming its way into the public consciousness: broadband wireless.

This kind of wireless is on the other side of the spectrum from the mobile voice variety that has become such a ubiquitous mode of personal communications all over the world.

Broadband wireless, which is known as a fixed technology because it does not allow mobility, is a networking method that telecommunications service providers can apply to the coveted ''last mile'' - the area between the high-tech, high-speed carrier network and the customer access site. The emergence of broadband wireless as a solution for that last mile, notorious for being a bandwidth bottleneck, is significant on several levels.

Technologically speaking, the approach is less expensive for network operators to deploy than wire-line alternatives because network construction essentially consists of antenna siting and alignment.

In addition, while the last mile of telecommunications networks has a bad reputation for sluggishness, it also represents one of the most competitive areas. In countries all over the world, local telephone monopolies are being deregulated, and upstart competitors are entering the local access market to challenge the incumbents.

Broadband wireless is a fast and efficient method for those challengers to become quickly competitive. Pioneer Consulting, a telecommunications market research firm, recently predicted network operators around the world using broadband wireless to serve business customers would earn more than $11.5 billion by 2007

The platform can also be beneficial to the business customers themselves. Depending on how the technology is deployed and how much spectrum is available, broadband wireless can provide voice, data and even video connectivity to a single office suite, a whole building or an entire corporate campus.

A whole sector of competitive carriers has taken shape over the past several years to pursue the local voice and data market using the broadband wireless platform - and the majority of them are targeting the small and midsized business segments. Several of them - including Teligent Inc., Advanced Radio Telecom Corp., WinStar Communications Inc. and Formus Communications Inc. - are already operational in some U.S. regions.

Meanwhile, the Federal Communications Commission in the United States and government entities in other countries have auctioned spectrums designated specifically for broadband wireless use. For example, Nextlink Communications Inc., a facilities-based competitive local exchange carrier in the United States, recently acquired WNP Communications Inc., the largest holder of broadband wireless spectrum in the U.S. market.

Sprint Corp. and MCI WorldCom Inc., which have announced merger plans, have made acquisitions that will position them to use broadband wireless as part of their strategy for providing local voice and data services to business and residential customers.

Jason Meyers